Why should I be investing in ETFs?
As a new investor, ETFs can be a great place to start your investment portfolio. There are thousands of stocks and bonds traded on the exchanges, and it can be difficult to know where to start. With an ETF you can invest in a theme representing ownership in a variety of different companies. You don’t need to be paralyzed by trying to choose a “winner.”
Q. What does ETF stand for?
ETF stands for Exchange-Traded fund. Here is breakdown of that means. Exchange-Traded means you can buy and sell ETFs on public stock exchanges like the Nasdaq or the New York Stock Exchange. In this context, a fund is a bundle of assets, usually stocks, bonds and/or cash. These bundles of stocks, bonds, and cash usually…
Q. Do ETFs pay dividends?
It depends on the ETF! Some ETFs definitely do pay dividends. And just like companies decide when to pay dividends to investors, managers of ETFs decide when or if an ETF will pay dividends. Usually ETFs pay dividends depending on whether the companies within the fund are also paying dividends and if the prospectus (aka…
Q. Are ETFs safe?
Investing involves risk, even when investing with ETFs. Like other investments (stocks, bonds, mutual funds), ETFs are deemed “safer” or riskier depending on what is in the investment. Risk isn’t determined by the type of investment as much as it is determined by what is ‘under the hood’ of each investment. In the finance and…
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Now That’s What I Call an Investment! ETFs Explained
You may have heard that Exchange-Traded Funds are a great first investment. But what's an ETF? We use a helpful analogy to break it down.
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